SLIDE 3 3
SOLAR FINANCING ALTERNATIVES
- Solar Tax Credit Overview – 30% cost reduction!
- Donations or cash on hand
- Borrowing
– Church members
- 30% benefit pass through to members (CAUTION!)
- Performance-based lease with a 3rd party, with a deposit feature
– 3rd party solar specialty financing
- Potential for some reduction in cost due to tax credit and other tax benefits
– Church affiliates – Presbyterian Investment & Loan Program, Mission Investment Fund – Other 3rd parties
- Mortgage refinancing or 2nd mortgage
The church purchases the solar panels and receives all of the electricity and state/federal incentives if applicable. You may take
upfront costs over 10 or more years.
DIRECT OWNERSHIP
Financial benefits of DIRECT OWNERSHIP
- Electricity savings: solar array connected behind
existing electrical meter and will directly reduce electric bill.
- State of federal incentives. In many states can receive
incentive rates per kWh .
- Unfortunately non-profits are unable to take
advantage of tax benefits associated with solar
The church pays nothing up front and purchases solar electricity at a discount through a Power Purchase Agreement.
POWER PURCHASE AGREEMENT
Financial benefits of POWER PURCHASE
- No upfront costs
- Can save money on electric bill by locking in long-
term, stable rate below current utility cost.
- Typically extra credits, often created in the
summer months, will carry forward on your electric bill to be used during winter months.
Option 1 Direct Ownership Option 2 Power Purchase
Array Size 50 panels (15 kW) 50 panels (15 kW) Estimated Annual Output 69% of usage (19,500 kWh) 69% of usage (19,500 kWh) Equivalent CO2 Reduction Preserving 17 Acres of Forest Preserving 17 Acres of Forest Upfront Cost
$0 Estimated 25-year Total Savings $156,760 $39,670
Comparison of Options
Option 1 Direct Ownership
Upfront Cost
Estimated Loan Rate 2.75% (Restoring Creation Loan) Term Up to 10 Years Annual Payment (for 10 years) $5,725 Estimated 25-year Total Savings $99,100
Financing Option
www.elca.org/Resources/Caring-for-Creation A link to Earthkeeping Resources and the ELCA’s Social Statement on the Environment. www.lutheransrestoringcreation.org A grass roots movement within the ELCA, seeking to foster care for God's creation in all expressions of our church's life. Includes news, tips, and links relating to creation care efforts throughout the ELCA. www.energystar.gov/congregations Free information and resources, including technical support, from a division of EnergyStar specific for congregations.
ELCA RESOURCES
www.webofcreation.org www.nccecojustice.org www.energystar.gov
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